"Foundation of organizational structure"

Organizational Behavior

1. FOUNDATIONS OF ORGANIZATIONAL STRUCTURE Name: Muhammad Ahmar Shakeel Subject: Organization Behaviour Teacher : Dr. Shahzadi Sattar

2. Introduction to Organizational Structure • Organizational structure defines how tasks are divided, coordinated, and controlled within an organization. • It includes the roles, responsibilities, and relationships among employees. • It determines how power and decision-making are distributed.

3. Six Key Elements 1. Work Specialization: Division of tasks into specialized roles. 2. Departmentalization: Grouping jobs based on functions, products, or geography. 3. Chain of Command: Authority flow and reporting lines. 4. Span of Control: Number of subordinates per manager. 5. Centralization vs. Decentralization: Location of decision-making power. 6. Formalization: Degree of standardized rules and procedures.

4. Traditional Structures 1. Simple Structure: Low departmentalization, centralized authority, few rules. 2. Bureaucracy: High specialization, strict rules, centralized authority. 3. Matrix Structure: Combines functional and product departmentalization with dual reporting.

5. Modern Organizational Designs • Virtual Organization: Core organization outsourcing functions. • Boundaryless Organization: No traditional barriers, empowered teams. • Global Organization: Operations spread globally with decentralized leadership. • Leaner Organization: Downsizing to improve efficiency.

6. The Virtual Organization • Core organization outsourcing functions (e.g., R&D, manufacturing). • Focus on flexibility and cost-saving. • Relies on strong communication networks.

7. The Boundaryless Organization • No clear chain of command, limited span of control. • Cross-functional teams, eliminates internal and external barriers. • Promotes collaboration, knowledge-sharing, and global operations.

8. The Global Organization • Leadership and functions spread worldwide, often decentralized. • Offshore production, diverse managerial backgrounds. • Example: Apple, with global design and production operations.

9. The Leaner Organization • Downsizing efforts for cost savings and efficiency. • Focus on reducing unnecessary layers and eliminating non-essential tasks. • Ethical downsizing strategies to avoid employee morale damage.

10. Conclusion • Organizational structure is a crucial determinant of efficiency, culture, and effectiveness. • Different structures (traditional or modern) are suitable for various business environments. • Effective organizational design can improve communication, adaptability, and innovation.

11. Questions & Answers